Nippon Hume Corp. (5262) AI Stock Analysis

• Market Cap: ¥86.09B
• Dividend Yield: 1.49%
• Average Volume (3M): 536.28K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.93
• Revenue Growth: -8.92%
• EPS Growth: 1.67%
• Country: JP
• Employees: 552
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 13.09
• Shares Outstanding: 58,695,000
• 10 Day Avg. Volume: 294,130
• 30 Day Avg. Volume: 536,283
• PEG Ratio: 0.25
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -78.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥7,480.00
• Price Target Upside: 392.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,961.00 ▲(29.10% Upside)

The score is driven primarily by strong fundamentals—revenue growth, solid margins, and a very low-leverage balance sheet—partly offset by weak cash conversion/negative recent free cash flow. Technically, the trend is positive, but overbought RSI increases short-term risk. Valuation is a headwind given the higher P/E and modest yield.

Positive Factors

Very low leverage / strong equity ratio

A debt-to-equity of 0.02 and 74.45% equity ratio indicate a conservatively financed balance sheet. This durable strength reduces refinancing and solvency risk through construction cycles, enabling funding flexibility for capex, bids or selective M&A without material leverage strain.

Solid profitability margins

Sustained gross, EBIT and net margins imply structural pricing power or execution efficiency in projects. Durable margins support reinvestment and resilience to input-cost swings common in construction, helping maintain operating cash generation potential when revenue trends stabilize.

Historical revenue growth trajectory

A multi-year revenue growth trajectory suggests established market position and repeat business in construction. Durable top-line growth enables scale benefits, better supplier terms and higher bid competitiveness, supporting long-term margin sustainability and strategic investments.

Negative Factors

Weak cash-flow conversion and negative FCF

Negative recent free cash flow and OCF/net income of 0.29 indicate poor cash conversion from reported earnings. Over months this constrains internal funding for capex, working capital needs and shareholder returns, raising reliance on external financing despite low leverage.

Recent year revenue decline

A near-term reported revenue decline of ~9% weakens the previously noted growth trajectory and may reflect project timing, competitive pressure or demand softness. Persisting declines reduce scale advantages and can pressure margins and cash generation over several quarters.

Moderate return on equity

ROE of 7.15% signals only moderate capital efficiency given the low leverage. Over the medium term this limits shareholder return potential and suggests the company may not be fully converting its strong equity base into superior returns versus peers, constraining long-term investment appeal.

Nippon Hume Corp. Business Overview & Revenue Model

Company Description

Nippon Hume Corporation designs, manufactures, and sells concrete secondary products in Japan and internationally. The company offers pipeline products, such as hume tubes and synthetic steel pipes, box and arch culverts, assembly manholes, precast joint grooves, wellman products, jip pipes, propulsion pipes, optical fiber compatible products, and antibacterial concrete products; concrete piles; RC segments and FN fittings; and PC and composite wells, and press casts and PRC hollow piers. It also provides multi-arch divided systems, precast guard fences, EMC wall rails, and wall railings; and valve boxes, precast retarding basins, and eco concrete products, as well as optical fiber cables. Further, the company is involved in the construction contracting, and civil engineering and telecommunications works; sale of concrete products and big agents; sports business; manufacture, sale, design, and equipment construction of deplant deodorization system; maintenance of buildings; manufacture and sale of formwork for concrete products; real estate business; laying business; and pipeline diagnosis business. The company was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Hume Corp. generates revenue primarily through the sale of cement and concrete products to the construction industry. Its key revenue streams include the production and distribution of ready-mixed concrete, precast concrete products, and other cement-based materials. The company benefits from long-term contracts with construction firms and government projects, ensuring a steady flow of income. Additionally, Nippon Hume has established partnerships with various stakeholders in the construction sector, allowing it to leverage collaborative projects that enhance its market presence. Factors contributing to its earnings include the demand for construction materials in urban development, infrastructure projects, and a focus on environmentally friendly practices that attract clients looking for sustainable solutions.

Nippon Hume Corp. Financial Statement Overview

Summary

Strong income statement trends with consistent revenue growth and solid profitability (net margin 8.22%). Balance sheet is very conservative (debt-to-equity 0.02; equity ratio 74.45%), reducing financial risk. Main weakness is cash generation: most recent free cash flow was negative and operating cash flow conversion is low (OCF/net income 0.29).

Income Statement

Nippon Hume Corp. shows a strong revenue growth trajectory, with a consistent increase over the years. The company achieved a net profit margin of 8.22% in the latest annual report, indicating solid profitability in the construction industry. The gross profit margin of 19.60% and EBIT margin of 5.45% are commendable, although there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.02, suggesting minimal financial leverage and low risk. The equity ratio is robust at 74.45%, underscoring the company's stable financial structure. However, the return on equity of 7.15% indicates moderate efficiency in generating returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, which was negative in the most recent year. The operating cash flow to net income ratio of 0.29 suggests potential issues in cash conversion efficiency. Despite these challenges, the company has maintained a reasonable free cash flow to net income ratio over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.09B	37.06B	33.73B	31.88B	29.50B	30.45B
Gross Profit	7.07B	7.26B	5.89B	5.37B	5.56B	5.51B
EBITDA	4.49B	4.60B	3.30B	2.76B	3.50B	3.30B
Net Income	2.97B	3.05B	1.91B	1.64B	2.14B	2.13B
Balance Sheet
Total Assets	57.62B	57.24B	62.08B	54.98B	52.12B	50.42B
Cash, Cash Equivalents and Short-Term Investments	11.74B	12.75B	14.39B	12.46B	13.07B	12.33B
Total Debt	3.02B	855.03M	1.51B	1.07B	982.03M	928.05M
Total Liabilities	13.38B	14.16B	20.48B	16.78B	15.19B	14.40B
Stockholders Equity	43.76B	42.61B	41.13B	37.90B	36.63B	35.69B
Cash Flow
Free Cash Flow	0.00	-596.51M	2.07B	-37.02M	501.88M	2.89B
Operating Cash Flow	0.00	897.21M	2.77B	649.98M	972.88M	3.60B
Investing Cash Flow	0.00	36.60M	-121.63M	-757.59M	561.83M	-1.16B
Financing Cash Flow	0.00	-2.53B	-790.56M	-519.52M	-823.73M	-473.46M

Nippon Hume Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1519.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5262, the sentiment is Positive. The current price of 1519 is below the 20-day moving average (MA) of 1573.90, above the 50-day MA of 1495.45, and above the 200-day MA of 1388.16, indicating a bullish trend. The MACD of 34.43 indicates Positive momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 21.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5262.

Nippon Hume Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6485	79 Outperform	¥34.00B	11.54	―	4.23%	-0.34%	50.73%
5237	78 Outperform	¥12.46B	12.31	―	3.90%	0.58%	-9.72%
5262	67 Neutral	¥86.09B	26.30	―	1.49%	-8.92%	1.67%
7943	66 Neutral	¥115.01B	32.52	―	3.53%	-0.58%	-46.15%
5273	65 Neutral	¥109.41B	11.22	―	1.92%	12.72%	28.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5337	53 Neutral	¥17.44B	15.53	―	―	-5.45%	―

Nippon Hume Corp. Corporate Events

Nippon Hume Corp. Revises Financial Forecasts Upward for FY 2026

Nippon Hume Corporation has revised its financial forecasts for the fiscal year ending March 31, 2026, indicating an upward adjustment in operating profit, ordinary profit, and profit attributable to owners of the parent. The revisions are attributed to improved profitability, cost reductions, and gains from the sale of investment securities, which are expected to significantly exceed initial expectations, reflecting a positive impact on the company’s financial performance.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen3568.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Announces Dividend Increase Amid Positive Profit Outlook

Nippon Hume Corporation announced a resolution to pay interim dividends from surplus, with a record date of September 30, 2025, and an effective date of December 10, 2025. The dividend per share is set at 22 yen, including a 3 yen commemorative dividend. Additionally, the company revised its year-end dividend forecast for the fiscal year ending March 31, 2026, increasing it by 2 yen per share to 13 yen. This decision reflects the company’s expectation of higher profit attributable to owners of the parent and aims to express gratitude to shareholders, resulting in an anticipated annual dividend of 48 yen per share, up by 4 yen from the previous year.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen3568.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Reports Decline in Profits Amid Strategic Stock Split

Nippon Hume Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a decline in net sales and profits compared to the previous year. Despite a decrease in net sales by 11.5% and a reduction in operating profit by 22%, the company announced a stock split effective January 1, 2025, and revised its dividend forecast, indicating a strategic move to enhance shareholder value.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen3568.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.